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Information Bulletin

$2.3 million in contraband tobacco products seized by AGLC investigators

An estimated $2.3 million dollars of contraband cigarettes and cigars were recently seized following an investigation by Alberta Gaming, Liquor & Cannabis (AGLC). The total potential lost tax revenue is estimated to be more than $797,000.

After a six-month investigation, a search warrant was executed with the assistance of Edmonton Police Service at a warehouse in north Edmonton. Mihvan Shekho Salih of Calgary and Hussein Jumaah Abbo of Edmonton were charged with trafficking in contraband tobacco, contrary to section 121.1 of the Criminal Code of Canada. The accused are scheduled to appear in Edmonton Provincial Court on April 8, 2021.
  
 Contraband tobacco:

  • is any tobacco product that does not comply with federal and provincial laws related to importation, marking, manufacturing, stamping and payment of duties and taxes;
  • comes from four main sources: illegal manufacturers, counterfeits, tax-exempt diversions and resale of stolen legal tobacco; and
  • can be recognized by the absence of a red (Alberta) or peach/light tan (Canada) stamp bearing the “DUTY PAID CANADA DROIT ACQUITTÉ” on packages of cigarettes and cigars or pouches of tobacco. 

In addition to lost revenues that may otherwise benefit Albertans, illegally manufactured products also pose public health and safety risks as they lack regulatory controls and inspections oversight.

All wholesalers and importers of tobacco into Alberta must be licensed to sell or import tobacco for resale. Furthermore, all tobacco products must be labelled according to federal and provincial regulations. Albertans who suspect illegal tobacco production, packaging and/or trafficking are encouraged to contact AGLC’s Tobacco Enforcement Unit at 1-800-577-2522.

Under a Memorandum of Understanding with Alberta Treasury Board and Finance, AGLC enforces the Tobacco Tax Act and conducts criminal  investigations  related to the possession, distribution and trafficking of contraband tobacco products. In 2019-20, provincial revenue from tobacco taxes was $805 million.

 

Multimedia

Contraband photo 1
Contraband photo 2

Media inquiries

Media Relations
media@aglc.ca
587-596-5351